Dubai Islamic Bank's Landmark $500M Sukuk Issuance

Dubai Islamic Bank (DIB) has once again demonstrated its prowess in the international capital markets with the successful issuance of a USD 500 million Additional Tier 1 Sukuk. This strategic move not only fortifies the bank's capital adequacy ratio but also optimizes its balance sheet, reinforcing its position as a leader in the banking sector.

The Sukuk, which complies with Basel III regulations, has a profit rate of 5.25% per annum and was met with significant interest from a diverse investor base spanning Europe, Asia, and the Middle East. The transaction achieved a reset spread of 133.4 basis points over the US Treasury rate, marking the lowest for an AT1 instrument globally since the 2009 financial crisis. This milestone underscores the robust credit fundamentals of DIB and the positive credit narrative of the UAE.

Dr. Adnan Chilwan, Group CEO of DIB, expressed his satisfaction with the successful execution, highlighting the confidence placed by international and regional investors in the bank's strategy. The transaction's success is a testament to the strong investor following that the UAE enjoys and the bank's commitment to delivering on its market promises.

Rated A3 Stable by Moody's and A Stable by Fitch, DIB's Sukuk will be dual-listed on Euronext Dublin and NASDAQ Dubai, further enhancing its visibility and appeal to global investors. The strong order book allowed DIB to tighten pricing from the initial price thoughts of 5.75%, showcasing the high demand and trust in DIB's financial health and strategic direction.

Given the successful issuance and the bank's solid credit ratings, potential investors might consider this a favorable opportunity. The strong investor interest and the bank's strategic positioning suggest a positive outlook, making it a suitable time to buy for those looking to invest in a stable and promising financial institution.